Google’s Schmidt on the Patent-Caused Smartphone Oligopoly

byStephan KinsellaonDecember 5, 2012

I’ve written before on how patents repress competition and benefit the larger players in a given industry by forming oligopolies with a limited number of competitors.1 This is supported by the comments of Googld’s Eric Schmidt in a recent interview:

WSJ: Are Apple and Google discussing a patent-related settlement?

Mr. Schmidt: Apple and Google are well aware of the legal strategies of each other. Part of the conversations that are going on all the time is to talk about them.

It’s extremely curious that Apple has chosen to sue Google’s partners and not Google itself.

There’s a young [Android co-founder] Andy Rubin trying to form a new version of Danger [the smartphone company Mr. Rubin co-founded before Android]. How is he or she going to be able to get the patent coverage necessary to offer version one of their product? That’s the real consequence of this.

The Center for the Study of Innovative Freedom (C4SIF) is dedicated to building public awareness of the manner in which laws and policies impede innovation, creativity, communication, learning, knowledge, emulation, and information sharing. We are for property rights, free markets, competition, commerce, cooperation, and the voluntary sharing of knowledge, and oppose laws that systematically impede or hamper innovation, especially those enforced in the name of defending “intellectual property,” such as patent and copyright; these should be radically reformed or entirely abolished.

We provide news commentary and analysis and scholarly resources from our unique pro-property, pro-market, pro-innovation perspective. The Center is the publisher of the online scholarly journal Libertarian Papers.